It seems that the government and business in the United States have a very complex relationship. It seems that each year the Government wants to be more involved in what businesses are doing and influence the choices that they are making. While businesses wishes to find ways to decease the amount of involvement that the Government has within their company/companies.
Many Regulatory Agencies were developed over the years of the government trying to control business. The first ones were Act to Regulate Commerce and Interstate Commerce Commission (ICC). About 3 years after that the Sherman Antitrust Act. All of these acts were developed by the government to aid in regulating many different areas of business. Many more Acts and commissions were developed over the years to influence and protect businesses. Many of the agencies have been converted into organizations.
Through the years government has became involved in virtually all stages of business development. Many new enterprises cannot begin operations until they receive a license from a regulatory agency such as the ICC listed above. Once a license is obtained the business must also pass inspection and their products must be approved. Another area that must be covered before the business starts its operation is developing safety standards. All of these steps must be accomplished before products reach the market.
Business finally with time realized that instead of fighting the regulations of the government they must focus on advocating their own business positions instead. They did this by becoming more involved in the political aspects of their companies. Businesses focused on lobbying, negotiating tactics, and community groups. An example of this is the company Philip Morris a controversial tobacco industry.
In my opinion the government has became more and more involved especially with the current economic situation. Many companies are asking for government money to help them from going bankrupt. By doing this the businesses are allowing the government to have more control over their company and what they are doing with their money. It seems that with the current economic situation coma
pies are more willing to allow the government to have some control over the affairs of their company.
pies are more willing to allow the government to have some control over the affairs of their company. 
I agree with you about the increasing control over the management of a company. However, do you think that it is good for that company to have more control from the government? What will happen to the business environment if every company is waiting for the government rescue? In my opinion, government relations start from the basic discipline of a company. If every company is adhering strictly to the laws and regulations, lobbying efforts are not needed as “everyone is doing their job”. Lobbying, in my opinion, is just a diverting strategy used by big companies, to avoid more regulations to be imposed to them in the future. After all, it is a reciprocal relationship. Government cannot survive without the revenue from the businesses and businesses cannot survive without the protection of the government.
ReplyDeleteI think you hit the nail on the spot with the final sentence. The banking, and Financial Industry who have advocated less and less government invovlment in their industries throughout the years were the first to have their companies bailed out by the government. Seems interesting that they would change their position when it is convenient for them.
ReplyDeleteThat is true William, if companies were all following regulations, then lobbying would not be needed. However, I do not think that this will ever be true, because business will always be around. Do you agree that even the government will be controled by what the businesses do? We all think that there is a clear distinction from business and government, but is there really?
ReplyDeleteI agree that government has pretty much intruded in all stages of business and companies. This is why companies need to be aware of all new regulations and rules because if they do not, they will face consequences throughout their company.
ReplyDeleteI agree that government will be contolled by what the businesses do. Every choice and every decision has an impact on other things. The same is true for business and government. Yes it is convenient how the government can change its position at certain times.
ReplyDeleteI definitely agree with you William. I think it is very true that government cannot survive without the revenue from businesses and that businesses need the protection from the government. I just wonder what is going to happen when the new health care bill is in full swing. The government thinks it will be helping people but will it really help businesses and our economy? I read that if businesses don't supply health insurance to their workers they can be fined. How can all of the small businesses supply health benefits to their employees? I just don't understand how this will be good for a lot of businesses. This may end up causing more damage than good in the long and short-run.
ReplyDeleteGovernment's involvement in businesses has two sides of influences. It can be positive when businesses are newly established or in their early stages of development or during difficult times. It can be negative if there are a lot of interventions on businesses' activities. Too many restrictions and regulatory obligations may lead to the stagnation of business. Therefore, the reasonable degree of Government intervention should be determined and adjusted according to the reality of business activities in order to achieve the best results for every involved party.
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